Murdoch dumps WSJ fees

MEDIA magnate Rupert Murdoch says News Corporation will drop the subscription model used by the online site of its latest masthead The Wall Street Journal in favour of free access.

Mr Murdoch said the company hopes to generate at least 10 to fifteen times as much traffic to the WSJ site by making it free. The company will make more money by attracting more readers, he said.

News Corporation is expected to complete its acquisition of WSJ owners Dow Jones – announced last month – by the end of the year.

Speaking at the annual News shareholder in meeting in Adelaide, Mr Murdoch said: “We are studying it and we expect to make that free, and instead of having 1 million (subscribers), having at least 10 million to 15 million in every corner of the earth.”

The WSJ.com site is one of the few internet sites to have successfully introduced a subscription model – charging its million readers an annual fee of US$50 (A$55).

After spending much the nineties as an online sceptic before ultimately becoming a big investor, Mr Murdoch told the meeting the internet was now generating US$1 billion a year for the company

While not expressing surprise at the size of the internet revenue, he did remark it was somewhat unsual given it came from a sector that “didn’t exist” as recently as a few years ago.

“I'd like to be able to say it was great prescience on my part but there's a certain amount of luck to it,” he said.

For more e-Marketing news, click here.

Seven gears for online future

THE cashed up Seven Network has further entrenched its future as an internet player in the region, with its joint-venture Yahoo7 teaming with Telecom New Zealand in another online content play.

And Seven is also reported to be lining up with its private equity partner Kohlberg Kravis Roberts to buy Telecom New Zealand’s directories business in a deal that could be worth $2 billion.

The Australian newspaper reported that four groups – including Seven and KKR – had been shortlisted to buy the TNZ directories business, and that each bidder was making presentations to the Telecom New Zealand’s senior management and its financial advisor Goldman Sachs.

The network took its relationship with TNZ a step closer last week with the launch of Yahoo!Xtra, the joint-venture between its Yahoo7 business – owned jointly by Yahoo and Seven – and Telecom New Zealand.

Yahoo!Xtra is 51 per cent-owned by Yahoo7. Yahoo7 chief executive Ian Smith was appointed interim CEO of the new venture. Smith said the new company aimed to bring together the global content of the Yahoo group – including Seven’s Australian resources – with “Xtra’s understanding of New Zealanders, their passions and their interests.”

“Our goal is to deliver New Zealand internet users the finest entertainment, information and communications experience available.

“With Yahoo!Xtra New Zealanders join a global community of almost half a billion people using Yahoo! in more than 20 countries.

Telecom New Zealand chief operating officer Kevin Kenrick – who is one of three TNZ representatives on the board – said Yahoo!Xtra would link the best of New Zealand to “the best the rest of the world has to offer.”

An Auckland-based chief executive is expected to be appointed to the new venture by the end of March.

For more Satellite and Broadcast news click here.